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Purchase Price Allocations and Impairment Testing
Purchase Price Allocations and Impairment Testing
Andersen is a premier provider of independent valuations for accounting purposes. Our specialists can support your finance team(s) with solving complex accounting assignments such as Purchase Price Allocations and Impairment testing.
Purchase Price Allocations
In a Purchase Price Allocation, the purchase price is allocated to identifiable assets and liabilities post-transaction. Identifiable tangible and intangible assets are appraised by Andersen to determine their ‘Fair Value’. The residual value is allocated to goodwill (i.e. ‘Goodwill Allocation’).
Andersen supports clients that prepare their consolidated financial statements post-transaction in conformity with accounting frameworks (such as IFRS and Dutch / U.S. GAAP) by combining intangible and tangible asset valuation expertise.
Impairment testing
Goodwill Impairment Testing is to be performed annually. Impairment testing may be performed more often if it is likely that the fair value of are porting unit is no longer greater than its carrying amount. Other assets need to be tested for impairment when certain triggering events are observed.
Examples of triggering events are the deterioration of macroeconomic conditions, increased costs, declining cash flows, ongoing restructuring or possible insolvency, a sustained decrease in share price or the expectation of a divestment of a reporting unit.
If impairment appears to be likely, you will have to consider an Impairment testing process. Andersen can add specialistic skills to your finance team such as financial modelling, forecasting and valuation of assets in combination with IFRS and Dutch / U.S. GAAP expertise.
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Expert session: Purchase Price Allocations
In February 2025, Andersen will host a knowledge session on Fair Value Accounting and Purchase Price Allocations for 15 members of the Dutch IMRA network. The attendees are all seasoned CFOs holding the Chartered Accountant(RA) designation, actively engaged in the Dutch corporate sector
Our Service Lines
Corporate Finance
If you want to sell or buy a business, Andersen is your partner of choice.
Valuations
We provide valuations for various purposes, ensuring adherence to relevant standards like IFRS, Dutch/U.S. GAAP, and OECD tax regulations.
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We model strategies, business plans and scenarios for all requirements.
Litigations
Our tailored solutions address the unique aspects of each conflict, enhancing your legal defense strategy.
Our PPA and Impairment Testing Team
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